On October 8th, the Department for Work and Pensions (DWP) introduced new plans to help fight benefit fraud by working with banks to monitor claimants.
DWP Introduces ‘Eligibility Verifications’ as Banks May Monitor Benefit Claimants
By Lydia Amazouz
Published on 10 October 2024 10:19
On October 8th, the Department for Work and Pensions (DWP) announced that banks will now help monitor benefit claimants to reduce fraud. The new rules will allow DWP investigators to request information from financial institutions when they suspect overpayments.
DWP Introduces New 'Eligibility Verification' Rules Involving Banks to Help Tackle Benefit Fraud
Work and Pensions Secretary Liz Kendall revealed the new ‘Eligibility Verification’ measures in Parliament on Tuesday, reports BirminghamLive. These rules will require banks to review the data they have on claimants and share it with DWP investigators when needed. The Fraud, Error and Debt Bill gives the DWP new powers, including the ability to ask banks for help in identifying fraudulent claims.
The Secretary said: “Through our Eligibility Verification measure, (the DWP will) require banks and financial institutions to examine their own data sets to highlight where someone may not be eligible for the benefits they are being paid. This will help DWP identify incorrect payments, prevent debts from accruing for the claimant and help identify where there may be fraudulent activity. Banks will only share very minimal information, and this will only be used by DWP to support further inquiry, if needed, into a potential overpayment.”
The department has clarified that investigators won’t have direct access to claimants’ bank accounts to track how they spend benefit payments, and this will not apply to state pensions. Instead, the new rules aim to help officials spot when someone no longer meets the eligibility criteria, whether intentionally or by accident, which can also prevent claimants from unknowingly falling into debt.
DWP Given New Powers to Tackle Benefit Fraud and Protect Claimants
The Bill is expected to save £1.6 billion over the next five years by reducing benefit fraud and recovering money lost through overpayments, while still protecting those who genuinely need support. The Secretary pointed out that many of the DWP’s anti-fraud measures are outdated, having not been updated in over 20 years.
The Bill gives the DWP new powers, including:
- Search and seizure abilities to investigate criminal gangs more effectively
- Changes to the penalty system to fairly punish fraudsters
- Stronger methods for recovering overpaid money
The Secretary said: "The Government is determined to prevent incorrect payments where we can, so DWP will be given new powers to better identify and prevent potential overpayments.
"These will help officials to ensure eligibility criteria is being met - including being able to see sooner where it is not - which will mean fewer claimants accruing debts and getting into financial difficulty. This will also serve to ensure every claimant is treated fairly.
"We will ensure that these powers are proportionate. We will introduce safeguarding, reporting mechanisms and independent oversight, to give greater confidence to claimants that the powers are being used fairly and effectively. DWP staff will receive training on the use of any new powers."